(for Northstar) $XEU – How it could rally (for technical reasons) and take $GOLD with it…
Seriously? Well, yeah. Maybe.
Here is a line chart of the $XEU for the last 5 years or so. The top rail of the 2015, 2016 $XEU reversal pattern extended to the right is exactly where $XEU found support in August this year. Dollar bears would like to see that trend line hold – a double bottom of sort for the Euro.
EDIT: Notice the $XEU positive RSI divergence to price !
Here’s how it might look on the monthly chart. $XEU sliding up through the apex of overhead resistance would confirm a powerful reversal of fortunes.
Could that really happen?
It could.
Do I think it WILL happen?
I think it rather unlikely.
But one must stay open to all possibilities.
Watching…
monthly sure looks like bear flag under 100/200 mov avgs…republicans win November, look out below
Thanks SF. Dashing out to work now, but I’ll have a think about this one later 😉